Robinhood has officially launched its long-anticipated desktop trading platform and introduced futures and index options trading features to its mobile app, aiming to enhance its offerings for more advanced investors.
The move comes as the fintech firm seeks to expand its market share and compete with established brokerages that primarily serve institutional clients.
The new desktop platform, named Robinhood Legend, is designed for active traders and includes advanced trading tools, real-time data, and customizable layouts at no additional cost. This initiative is part of Robinhood’s strategy to evolve from a popular commission-free trading app, which gained traction among individual investors in 2021, into a comprehensive financial services provider.
“We’ve matured alongside our customers and have heard loud and clear that they want access to more advanced products and more active trading tools. Our long-term goal is for Robinhood to be the primary financial services company that meets all of our customers’ needs,” stated Steve Quirk, Robinhood’s Chief Brokerage Officer.
In addition to the desktop platform, the mobile app will now allow users to trade futures linked to major benchmarks such as the S&P 500, as well as commodities like oil and bitcoin. Customers will also have the opportunity to trade index options, a feature previously limited to larger financial institutions due to higher costs and complexities.
Robinhood’s fees for trading futures and index options are positioned competitively, with subscribers to its premium Gold tier paying as low as 50 cents per futures contract and 35 cents for index options. In comparison, traditional brokerages like Charles Schwab and Morgan Stanley typically charge higher fees for similar trades.
The US brokerage industry, long dominated by firms like Vanguard and Fidelity Investments, began experiencing disruption with Robinhood’s introduction of commission-free trading in 2013. With this latest expansion, the company aims to attract a broader range of investors, particularly those with more experience and sophistication in trading.
Robinhood’s efforts to cater to more seasoned traders come at a time when retail investors are increasingly seeking advanced trading tools. According to market analysts, the firm’s foray into futures trading may draw interest, although it could face caution from some retail traders regarding potential fees.
As of June 30, Robinhood reported having 11.8 million monthly active users, including nearly 2 million premium Gold customers. The company has also experienced a significant stock gain of over 100% this year, driven by three consecutive quarters of reported profits and a commitment to focusing on “profitable growth” in 2024.
Robinhood’s new offerings were unveiled during the HOOD Summit in Miami, where the company highlighted its commitment to providing tools for more sophisticated trading. The launch of Robinhood Legend and the addition of futures and index options represent a strategic shift aimed at meeting the evolving needs of retail investors, who are increasingly interested in leveraging more complex financial products.
Reuters and Market Watch contributed to this report.
